Major cryptocurrency exchanges Binance and Bitget have initiated an investigation into the trading activity surrounding RaveDAO's RAVE token, following allegations by on-chain analyst ZachXBT that insiders manipulated the market, resulting in a significant short squeeze. The token's value skyrocketed by 4,500% in a week, leading to the liquidation of over $44 million in bearish positions.
Notably, nearly 90% of the token's supply was concentrated in three Gnosis Safe wallets, and millions of tokens were transferred to exchanges before the price surge. RaveDAO, a Web3 project focused on electronic music events, has denied any involvement in the price manipulation, stating that the team is not responsible for the recent price action. The project has announced plans to explore new token lock models, but the investigation by the exchanges is ongoing.